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2009

ANNUAL REPORT

ALMANSOORI SPECIALIZED ENGINEERINGP.O . Box : 3374, Abu Dhabi , Uni ted Arab Emi ratesTel . : 00971-2-6776335 / 6594500Fax: 00971-2-5550437Emai l : in fo@almansoor i .b izWebsi te : www.almansoor i .b iz

I N D E X

INTRODUCTION BY THE CHIEF EXECUTIVE OFFICER 2

MESSAGE FROM THE CORPORATE HSE & QUALITY MANAGER 3

MANAGEMENT COMMITMENT 4

ALMANSOORI 2009 HIGHLIGHTS 5

PERFORMANCE Health Performance 2009 6

Safety Performance 2009 8

Environment Performance 2009 10 Quality Performance 2009 11

AWARDS & RECOGNITIONS 12

1

Warm Salaams!

The Year 2009 have been a challenging Year for us as we had to go to a strong drive of cost cutting in order to sustain profitability in our organization.

Our main goal was to reduce cost but never compromise on our HSEQ standards.

The year ended with a success and we continue to have HSEQ programs in places that have met our expectations.

Salaams,Nabil Alalawi

2

In 2009, MSE Operation’s worldwide grew as we increased our man-hours by 26%.

With growth new challenges arose and with a dedicated and committed workforce, we managed to implement our HSEQ Policy and Procedures in all our new and existing operations and we proudly reduced our LTIF (Lost Time Incident Frequency) rate to 0.24 per million man hours worked.

AlMansoori’s HSEQ excellent performance has been acknowledged and recognized by numerous awards and recognitions received from the industry and from our stakeholders.

I would like to thank everyone for their efforts and continual commitment towards HSE and Quality, as Together Everyone can Achieve More.

Regards,Karim A. Pachiyannakis

3

AlMansoori’s management is fully committed to ensure a safe and healthy workplace, the protection of

the environment and quality services in our day to day business. We believe in a transparent and pro-

active policy and that all adverse environmental impacts are preventable. This dedication is demonstrated

on a continual base through managements’ enthusiastic and visible leadership, which can be seen

promoting a healthy lifestyle, reinforcing the company’s core values especially safety by walking the talk,

chairing HSEQ meetings, performing site visits and meeting the workforce, encouraging positive and

safe behavior, promoting the latest environmental technology, and last but not the least, meeting with

clients to appreciate their expectations to ensure delivery of service excellence.

In 2009, we increased our management’s presence at our worksites and yard facilities. A total of 139

senior management site visits were made, in additional to that, HSEQ professionals and supervisors

carried out their planned audits and inspections.

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• AlMansoori won the Best Company in Health and Safety Category at the Excellence in Energy Awards 2009.

• AlMansoori received Silver Medal in “ASSE GCC HSE Excellence Award 2009” under Engineering & Construction Category.

• AlMansoori sponsored IOSH Conference on May 2009.

• A successful surveillance audit on all three international standards was carried out by Vincotte AlMansoori Specialized Engineering and AlMansoori Production Services.

• In addition, the following Companies were certified in 2009, to the three HSEQ International Standards ISO 9001, ISO 14001 & OHSAS 18001: AlMansoori Safety Services Global Chemical Company SpecializedOilfieldProducts

• In 2009, GTSC and AlMansoori Inspection Services became full members of LEEA (Lifting Equipment Engineers Association).

• AlMansoori Safety Services Team won an Award from KO-CHEVRON-KGOC for Exceptional Performance and Outstanding Contribution to EHS in Kuwait.

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Corporate Health Objectives 2009 Completion %

1.Implementing the Health Monitoring Management System and ensure people are trained, physically and mentally fit for their assigned tasks.

100%

2.To have all Employees on Category 1 and 2 by conducting health induction, follow-up and recommendations from HSEQ department.

100%

3. Develop and design health publications for all employees on quarterly basis. 100%

4. Provide in-house health training sessions to all employees by HSEQ department. 85%

5.Conduct health and hygiene inspection in our company guest house. (Once every month by division & quarterly by HSEQ dept.)

100%

6. Conduct health & hygiene inspection in our field camps and offshore vessels. 100%

AlMansoori always strives to promote the health of its employees to conduct its activities and avoid harm to its employees, sub-contractors, visitors and the community. To achieve this goal, the company launched its Health Monitoring Management System (HMMS) in 2005, its progress is continually monitored and health activities are based around it.

Through HMMS, employees are sent for periodical medical check-ups depending on their age, occupation and health category.

Health improvement initiatives are launched to improve employees’ health and assist them to move from one category to another.

The chart below shows the Corporate Health Category Statistics for 2009. Employees who fall under Category 1 are those whose test results are normal and they are living a healthy lifestyle; Category 2 are those employees who are healthy, however need to make some changes to improve their lifestyle and avoid health problems, example stop smoking, modify their diet and exercise regularly; Category 3 employees who needs medical treatment; and Category 4 are those who are unfit for the job.

Category 1: Medical Check-up once every 3 years.

Category 2: Medical Check-up once every 2 years.

Category 3: Medical Check-up once every year.

Category 4: Suspended from the job for time or treatment.

CATEGORY 35%

CATEGORY 251%

CATEGORY 144%

CATEGORY 1 CATEGORY 2 CATEGORY 3

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Health Campaign Program was in the form of lecture, site visits and publications. Two awareness lectures such as “Know Your Body” and “Healthy Lifestyle” are conducted on a monthly basis, for which are mandatory for all employees to attend.

Additional healthawarenessandpublicationsgiventoemployeesin2009 are “Food Safety & Basic Hygiene“, “Hepatitis”, “Watch Your Back”, “Sugar”, “Urine Color Chart”, “Stroke”, “Heart Attack” and “Ramadan” awareness presentation.

Watch Your Back

AlMansoori Specialized Engineering LLC

HAEQ2008 - ANNUAL REPORT

HEALTH - SAFETY - ENVIRONMENT - QUALITY

www.almansoori.biz

Understanding Your Back

The spine supports the trunk and the head, allows flexibility of the body and protects the spinal cord.

Disc Injuries

Disc injuries are related muscles, ligaments, or joints. When a disc is strained beyond its limit, the outer casing can tear or rupture. The inner jelly-like substance can seep out of the disc. If this material touches a spinal nerve, pain will be felt in the leg called "sciatica".

Better Back

Exercsie is the only way to keep your muscles healthy.Strong, flexible muscles are essential to a healthy back.They support the spinal column and determine posture, which is the key to a healthy back.

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Corporate Safety Objectives 2009 Completion %

1. Achieve Zero LTI’s throughout the year. One LTI

2. Achieve Zero Road Traffic Accidents throughout the year. Ten RTA

3.Ensure that our employees are awarded and recognized for achieving Zero Lost Time Accident and implementing high HSEQ standard.

5%(Ceremonies conducted)

4.Conduct annual corporate internal audits in every division/company by HSEQ team and self-internal HSEQ audits by the division/company every 6 months.

100%

5.To have individual Safety Field booklet for each service by 3rd quarter of year 2009.

75%

6.To establish Behavioural Safety Audit Program (i.e., trainings, questionnaires, campaigns) and incorporate it in our HSEQ Management System.

50%

7.Review all Task Hazard Analysis and Risk Assessment of all MSE operational activities.

60%

8.To continue to implement a minimum of one field visit and one site inspection every month.

100%

Employee’s safety continues to be an area of concern and attention. AlMansoori’s HSEQ Policy states that we need to conduct our oilfield activities in such a way we avoid harm to our employees and all others who maybe affected directly or indirectly by our activities.

Regular training plays a critical role in accident prevention and increases the awareness of the employees in the HSEQ Management System. In order to keep awareness of employees on safety aspects, we are generating an HSEQ training plan for every employee and coordinating with Training Centers to complete these plans successfully; including in-house training for our employees such as Office Safety, Emergency Response Planning and Behavioral Safety Training.

AlMansoori ensures that every employee and all others who may be affected by our activities work under the safest possible conditions. It is the Company’s firm belief that every effort must be made to avoid accidents; injury to people, damage to property and the environment. The Management believes that all accidents are preventable and this can be achieved through thorough planning, comprehensive risk assessments, fit for purpose procedures, and dedicated HSEQ leadership throughout our operations.

In 2009, Lost Time Frequency rate has decreased by 62%, however, Road Traffic Accidents increased significantly by 270% (these statistics include all accidents no matter how minor). It is ALMANSOORI’s ability to report and learn from all incidents that will assist us in preventing all future undesirable events.

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AlMansoori Specialized Engineering in 2009 had One LTI resulting from a road traffic accident, two Restricted Work Cases from operational activities and two high potential rollovers. All these incidents underwent a thorough incident investigation to uncover the root causes and to identify preventive actions to eliminate a recurrence.

The table below shows the HSEQ performance of the company in 2009. The main purpose of this table is to highlight area of improvement. We believe this will help us to get our HSEQ performance to the highest possible level.

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Corporate Environment Objectives 2009 Completion %

1.Conducting HSEQ audits to continually comply with International Marine Regulations for Environmental Protection of all vessels throughout the year by the HSEQ & Marine Department.

100%

2.Ensure implementation of Waste Management Procedure throughout the year through regular site inspection and internal audits.

100%

3. Conduct in-house enviromental training by the Enviromental Engineer. 100%

4.To reduce the consumption of energy (i.e., electricity, water and fuel) by awareness campaign, monthly monitoring of usage and maintenance of records.

75%

5. To review risk assessment results and significant environmental impacts. 75%

The environment has long been deeply rooted in the culture of our company. This now gives us the capacity to satisfy these expectations and conduct our operations with minimum impact on the environment.

AlMansoori is fully committed to prevent any adverse environmental effects from its operations and activities, and will strive to promote environmental technology to further protecting the environment it works in. AlMansoori is open to share their knowledge and experiences in the continued support of research and development.

AlMansoori will always make available to all stakeholders relevant information that may affect the environment and their health and safety.

In 2009, three AlMansoori Companies - AlMansoori Safety Services, Global Chemical Company and Specialized Oilfield Products were certified to the three HSEQ International Standards ISO 9001:2008, ISO 14001:2008 & OHSAS 18001:2007.

AlMansoori will continue to comply with all relevant environmental legislation and regulatory, be proactive in identifying significant environmental and social impacts and ensure all employees are trained and accountable in protecting the environment.

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Corporate Quality Objectives 2009 Completion %

1. Continuous review of HSEQ performance on monthly basis by HSEQ division. 100%

2.Continue to provide the highest standards of Customer Care training to all employees.

100%

3.Ensure all MSE operations outside UAE are having & implementing the Corporate MSE HSEQ Standards by end of 4th quarter 2009.

80%

4.Encourage & award employees for reporting quality suggestions throughout the year at the minimum rate of 1 / month / employee.

30%

5. To establish Management of Change Procedure. 75%

6. To establish an Aging Asset Management Program. 10%

AlMansoori is a Company constantly seeking to improve its quality standards and performance in all areas of the Company’s operations while ensuring that strong and positive relationships are maintained with their stakeholders.

Providing products and services of utmost quality is a core value and a pillar to achieve our vision. The importance of quality is demonstrated at every level within the Company. AlMansoori has the Customer Care Training Program which is mandatory for all employees to undergo, to ensure continuous success in meeting our customers’ needs and expectations.

Another major factor taken into consideration when measuring the quality of service we provide is our customer feedback form. This year we were able to achieve our target by encouraging customer to report their satisfaction level of our services. Many of our employees were individually appreciated and recognized by our customers for high standards of quality performance on site.

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AlMansoori division’s recognize and reward employees for their excellent contribution in HSEQ performance. The categories are for Best Dangerous Situation Feedback Report, Best Quality Suggestion and Driver of the month. These awards are ongoing as they have proved to contribute to the success of AlMansoori’s HSEQ programs.

AlMansoori’s Milestone Recognition Program (MRP) has been implemented by all AlMansoori Divisions for contract and call-out operational personnel. The program aims to recognize and award individuals and teams for achieving Zero Lost Time Incidents and improve HSE performance by changing employee behavior. The MRP also intends to challenge employees’ thinking about work, teams and their ability to influence HSEQ outcomes and to increase understanding about the beliefs and values that emphasize good HSEQ performance.

In 2009, AlMansoori Specialized Engineering continued implementing the Milestone Recognition Program (MRP). Progress of the program was presented to AlMansoori employees and clients. The objective of the program is to achieve Zero Lost Time Incidents at work and to bring HSE to the forefront of our employee’s minds. In essence, we achieve this by rewarding employees financially for executing their work in a safe manner as a team.

Company / DivisionsWorked

without LTI since

Milestone Achieved in 2009 without

LTI

MRP Milestones Achieved (%)

AlMansoori Specialized Engineering October 20082 Million Man

Hours110 Milestones (99%)

AlMansoori Production Services May 2005 4 Years 31 Milestones (100%)

AlMansoori Safety ServicesOperations started on

June 2003No LTI

6 Years 25 Milestones (100%)

AlMansoori Wireline Services October 2008 1 Years 15 Milestones (100%)

AlMansoori Directional Drilling ServicesOperations started on March 2008

No LTI

1 Years 12 Milestones (100%)

AlMansoori Inspection Services October 1999 9 Years 27 Milestones (96%)

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HSEQ

2009

ANNUAL REPORT

ALMANSOORI SPECIALIZED ENGINEERINGP.O . Box : 3374, Abu Dhabi , Uni ted Arab Emi ratesTel . : 00971-2-6776335 / 6594500Fax: 00971-2-5550437Emai l : in fo@almansoor i .b izWebsi te : www.almansoor i .b iz